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Managing merchandise in transit

We buy merchandise from Chinese vendors. The stock is our own as soon as it is loaded on the boat. The goods will...

take 6 weeks to arrive to our warehouse. We need to post the cost of the material and immediately pay the invoice. We also need to recognize the goods in transit when we calculate the average price of the material. In our release 3.1I, it is not possible to manage the invoice verification before the goods receipt, perhaps it will be possible after release 4.5B. We would appreciate if you help us to find a solution. Thanks in advance.


This is a bit of a stretch, but it just might work for your situation. Try this: Go ahead and do a goods receipt as though the material had arrived in your warehouse. Then, do a material transfer of these items from unrestricted stock into blocked stock. This will allow the goods to be used in calculating average costs and finish out the invoice verification process. When the items physically arrive, do another material transfer to move them from blocked stock to unrestricted stock. While the goods are in transit, keep a manual schedule on a spreadsheet somewhere for reconciliation purposes in case auditors show up looking for inventory quantities.


This was last published in December 2002

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